Dear Trader…
Indian equity benchmarks carried forward yesterday’s gains and settled over 2 percent higher on Wednesday, tracking recovery in global indices. After the flat start, the benchmarks inched gradually higher as the day progressed and settled closer to the day’s high. Sentiments remained positive as the Reserve Bank of India (RBI) has extended the interest equalisation scheme for pre and post shipment rupee credit for Ministry of Small and Medium Enterprises (MSME) exporters till March 2024 with the objective of boosting outbound shipments.
Frontline indices continued to trade higher in late afternoon deals, taking support from Finance Minister Nirmala Sitharaman’s statement that the Union budget for 2022-23 was about the philosophy of 'Atmanirbhar Bharat' (self-reliant Bharat) as customs duties were increased on those imported products which are also manufactured in India so that people buy the Indian equivalent. However, duties have not been increased on the products produced within the country. Adding to the optimism, Prime Minister Shri Narendra Modi has approved the setting up National Land Monetization Corporation (NLMC) as a wholly owned Government of India company. With monetization of non-core assets, Government would be able to generate substantial revenues by monetizing unused and under-used assets.
Nifty futures opened at 16010.90 points against the previous close of 16065.00 and opened at a low of 15961.00 points. Nifty Future closed with an average movement of 461.35 points and a rise of around 374.10 points and 16012.00 points...!!
On the NSE, the midcap 100 index will rise 2.16% and smallcap 100 index is closing rise 2.38%. Speaking of various sectoral indices only Metal stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.54917, fell from a high of Rs.55190 points to a low of Rs.53342 with a decline of 563 points, a trend of around Rs.53661 and March Silver opened at Rs.72900, fell from a high of Rs.73046 points to a low of Rs.71080, with a decline of 57 points, a trend of around Rs.71328.
Meanwhile, rating agency Icra in its latest report has said that it has warned of serious downside risks to the economy in next fiscal (FY23) with runaway current account deficit, steep fall in the rupee and a hardening yields on government bonds, as a result of the Russian-Ukraine crisis and the resultant spike in crude and other commodity prices.
It stated that International crude oil prices have hit a 14-year high at USD 130 a barrel on March 7, up from USD 94 a barrel before the invasion of Ukraine by Russia, which is the world's third-largest oil producer, supplying 14 per cent of global production. The price of the Indian crude oil basket has averaged USD 114.6 a barrel so far in March, a steep 22.9 per cent surge from USD 93.3 a barrel in February.
It mentioned at the current crude level, the current account deficit is likely to widen by USD 14-15 billion (0.4 per cent of GDP) for every USD 10 per barrel rise in the average price. If the price averages USD 130 a barrel in FY23, then the CAD will widen to 3.2 per cent of GDP, crossing 3 per cent for the first time in a decade. Accordingly, if the ongoing war pushes up the average price of the Indian crude oil basket in FY23 to USD 115 a barrel, the CAD is projected to widen to USD 100-105 billion or 2.8 per cent of GDP.
Technically, the important key resistances are placed in Nifty future are at 16404 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 16434 – 16474 levels. Immediate support is placed at 16160 – 16060 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
